May 14, 2014 - Written by John Cameron
STORY LINK Pound Rupee Exchange Rate Today: GBP to INR Trades Lower After BoE Inflation Report
Pound Rupee Exchange Rate Outlook Today:
At the outset of European trading the Indian Rupee (INR) was enjoying a stronger relationship with peers like the Pound Sterling (GBP) and US Dollar (USD).
The Rupee was supported as exit polls indicated that the opposition Bharatiya Janata Party possibly won between 249 and 340 seats at the recent election. 272 seats would be required for a majority.
The ruling Congress Party, who have earned a reputation for corruption and providing the nation with poor economic support, are expected to have taken just 70-148 seats.
Rupee currency forecast could improve Friday
Results will be announced on Friday and as investors believe that the Bharatiya Janata Party will do much to support domestic growth, a decisive victory could push the Rupee higher.
The emerging market asset was also stronger as climbing stocks bolstered risk appetite.
GBP to INR Suffers on trading before today's UK data release
Meanwhile, profit taking before the publication of today’s influential UK data weighed on the GBP/INR pairing and yesterday’s disappointing US retail sales report kept the ‘Greenback’ trading slightly lower against its Indian peer.
Earlier this week the Rupee achieved a one-month high against the US Dollar and some industry experts believe that Rupee strength could persist in the short-term.
In the opinion of foreign exchange strategist Jens Nordvig; ‘We generally want to trade from the long side, as we are constructive on the election outcome. In addition, sentiment on emerging markets has improved notably, and that is benefiting everything with carry – the Indian Rupee is in that group.’
As European trading progressed on Wednesday the Pound to Rupee exchange rate (GBP/INR) pairing fluctuated.
The Pound initially softened after UK jobless claims fell by less-than-expected and wages climbed by less-than-forecast, and the British currency went on to experience additional movement as the Bank of England’s inflation report showed a positive revision to unemployment forecasts.
The central bank’s growth and inflation projections were unchanged and it stressed that it was in no rush to begin raising interest rates.
Today’s US MBA mortgage applications data is unlikely to have much of an impact on the USD/INR exchange rate.
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TAGS: Indian Rupee Forecasts Pound Rupee Forecasts Pound Sterling Forecasts